The UK voted on June 23 to leave the European Union ("EU"). What will happen next and the challenges and implications for businesses remain crucial questions that will need to be addressed. DMS has been following the BREXIT debate closely so whilst there will be political and economic consequences, changes to the legal and regulatory environment will be gradual.

EU Domiciled Funds

DMS considers Ireland and Luxembourg to continue to be the domiciles of choice for both managers and investors seeking pan European marketing and distribution solutions. DMS is an EU domiciled management company authorized as an Alternative Investment Fund Manager ("AIFM") and UCITS Management Company and will continue to be permitted to manage AIFMD and UCITS funds and avail of the marketing passport across the EU. DMS will continue to have substance within the EU and is well positioned for future solutions. DMS has assisted in excess of 50 managers in accessing Europe by utilizing our European domiciled AIFM/UCITS Management Company. Although the long-term consequences may take time to unfold in terms of how the UK will fit in with the AIFMD and UCITS regulatory environment, DMS remains well positioned to deliver solutions through our European offices in Dublin, Luxembourg and London.

Non-EU Domiciled Funds

The UK has traditionally been one of the more popular countries in the EU for the marketing of non-EU domiciled funds. More needs to be understood from the UK Financial Regulator on how this will be permitted going forward under AIFMD. There is currently uncertainty on the impending ESMA decision on the possible extension of the passport to non EU jurisdictions, and the UK vote only serves to increase this uncertainty. Regulatory regimes like MiFID and EMIR will also need to be considered as the UK withdrawal process develops.

DMS can assist with a risk assessment and benefit analysis of your business and the possible options available to help steer you through this challenging time. We will continue to keep you up to date with all major developments as they occur.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.